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Both the food cost percentage and contribution margin approaches to menu analysis relate to the actual costs of food and beverages. Today, the cost of
Both the food cost percentage and contribution margin approaches to menu analysis relate to the actual costs of food and beverages. Today, the cost of labor is likely to exceed that of food and beverages in many restaurants. In such a situation, how logical is it to utilize a menu analysis system that is based upon food costs or contribution margin alone, and that ignores labor costs? Explain your answer. Both the food cost percentage and contribution margin approaches to menu analysis relate to the actual costs of food and beverages. Today, the cost of labor is likely to exceed that of food and beverages in many restaurants. In such a situation, how logical is it to utilize a menu analysis system that is based upon food costs or contribution margin alone, and that ignores labor costs? Explain your
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